Apple Watch loses steam as global smartwatch shipments dropped in 2024

For the first time ever, global smartwatch shipments declined in 2024, with Apple experiencing its sharpest downturn yet.

According to a recent report by Counterpoint Research, the worldwide smartwatch market fell by 7% in 2024, marking the market's first-ever annual decline. Apple maintained its leading market share position, but saw a significant 19% year-over-year drop in shipments.

Apple's shipment struggles were notably pronounced in North America, driven by the absence of anticipated models like the Apple Watch Ultra 3 and limited new features in the existing Apple Watch Series 10.

Analysts attribute Apple's slide to tougher competition, minimal upgrades in Apple's S10 lineup, and patent issues affecting the first half of the year. These patent issues include legal battles with medical technology firms AliveCor and Massimo.

AliveCor accused Apple of infringing on its electrocardiogram (ECG) technology patents, initially securing a favorable ruling from the International Trade Commission that recommended an import ban.

Apple's victory at the U.S. Patent and Trademark Office led to the dismissal of the case. Meanwhile, a separate dispute with Masimo resulted in an import ban on Apple Watches containing certain ECG features.

Additionally, sluggish performance from the Apple Watch SE lineup, along with no updates to these entry-level models, contributed to weaker consumer interest. While Apple faltered, Samsung and Xiaomi gained ground.

Global market share for smartwatches. Image credit: Counterpoint Research

Samsung recorded a modest 3% increase in shipments, spurred by new models like the Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE series. Xiaomi surged into the top five brands globally for the first time, driven by the popularity of its Watch S1 and Redmi Watch series.

Image credit: Counterpoint Research

China overtook North America and India to become the leading smartwatch market globally, propelled by local brands such as Huawei, Xiaomi, and Imoo. China's rise was bolstered by a diverse portfolio that appealed to varied consumer segments, including children's smartwatches.

Recovery may be gradual for Apple Watch

Moving forward, Counterpoint predicts a slow recovery for the smartwatch market, forecasting modest single-digit growth in 2025. Future smartwatch models, for both Android and iOS, are expected to feature advanced AI capabilities and enhanced health sensors.

These sensors address conditions like atrial fibrillation, sleep apnea, hypertension, and diabetes. Brands will likely focus on regulatory approvals for advanced health features to rejuvenate consumer interest and drive market recovery.